Members of the Portfolio Committee have questioned the composition of the Mzantsi Golden Economy adjudication panel and said it will consider resolving to reject the grant funding disbursed for 2026.
The Chairperson Mr Joe McGluwa said it seemed that the department deviated from its policy which prescribe appointment process of persons to serve on the MGE Adjudication Panel. “And policy is meant to be reviewed after three years. Why was this one reviewed only after two years?” asked Mr McGluwa.
Committee member, Mr Potgieter, had sought clarity on why it seemed that clauses that allowed the department space to eliminate risk were removed from the old policy. “ Why change what protected you from risk?” asked Ms Potgieter.
The Department and the MGE panel came to brief the committee on the 2026 funding opportunity where over R50 million will be disbursed. Members have criticized the close of the call and the adjudication mostly on account of panel members appointment without a publicized call, and unverified companies benefitting from the current window.
Committee member Mr Kgabo demanded the names of the panel members.
“We want South Africans to know the name of people who sabotage their grant funding applications. How were they appointed?”
Mr Kgabo said he suspected collusion with department officials had occurred, a surprising move given that the committee had prior lamented appointment of individuals linked to the Patriotic Alliance politicians.
“Officials working with you have failed to identified that some of the companies were deregistered, with some were registered two day before the funding window was opened; they have never done any work in the creative space.”
Mr Kgabo said he could count up to five companies registered two days before the department went public with the funding window.
“This process was not transparent, and was open to abuse. Due diligence should be done before companies are being paid.” Members unanimously advised against payments being effected as that will constitute financial misconduct.
It was responded that the verification process looks at the submissions process and not the content of the documents hence it was easy for newly registered companies to be part of getting the funding. The funding policy is silent on how old a company ought to before it could be awarded funding.
Mr Mcgluwa said he had serious concerns from what had transpired. “That the panel was not constituted in terms of the policy. We have serious concerns on the funding and adjudication around MGE, and could you kindly send members send the necessary proposals and recommendations so that this could be discussed.
Members called for the adjudication process to be nullified and that no payment is made without a swift compliance tests ran against the CIPC Biz Portal.
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